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LEGISLATIVE AUDIT COMMITTEE 66Th Montana Legislature

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LEGISLATIVE AUDIT COMMITTEE 66Th Montana Legislature PO BOX 201705 Helena, MT 59620-1705 (406) 444-3122 FAX (406) 444-9784 LEGISLATIVE AUDIT COMMITTEE 66th Montana Legislature SENATE MEMBERS HOUSE MEMBERS COMMITTEE STAFF Dee Brown Kim Abbott Angus Maciver - Legislative Auditor Jason Ellsworth Dan Bartel Candace Radovich - Secretary John Esp Tom Burnett Deborah F. Butler - Legal Counsel Pat Flowers Denise Hayman Joe Murray - Deputy Tom Jacobson Emma Kerr-Carpenter Cindy Jorgenson - Deputy Mary McNally Matt Regier DRAFT MINUTES LOG June 26, 2019 8:30 a.m. 172 Please note: This document is a Minutes Log and provides annotation of the time elapsed between the beginning of the meeting and the time at which the item was presented or discussed, a motion was made, or a vote was taken. The narrative presented here is provided only as a guide to the audio or video recording of the meeting. The official discussion, motion, or vote is available on the audio or video archive of this meeting. The Legislature does not prepare a transcript of the meeting activities. The time designation may be used to locate the referenced discussion on the audio or video recording of this meeting. Access to an electronic copy of these minutes and the audio or video recording is provided from the Legislative Branch home page at http://legmt.gov. On the left-side menu of the home page, select Committees, then Interim. Once on the page for Interim Committees, scroll down to the appropriate committee. The written Minutes Log, along with the audio and video recordings, is listed by meeting date on the interim committee’s web page. Each of the “Exhibits” is linked and can be viewed by clicking on the Exhibit of interest. All Exhibits are public information and may be printed. Please contact the Legislative Services Division at 406-444-3064 for more information. MEMBERS PRESENT: Sen. Dee Brown, Chair (R) Rep. Denise Hayman, Vice Chair (D) Rep. Kim Abbott (D) Rep. Dan Bartel (R) Rep. Tom Burnett (R) Sen. Jason Ellsworth (R) Sen. John Esp (R) Sen. Pat Flowers (D) Rep. Emma Kerr-Carpenter (D) Sen. Mary McNally (D) Rep. Matt Regier (R) MEMBERS EXCUSED: Sen. Tom Jacobson STAFF PRESENT: Angus Maciver, Legislative Auditor Candace Radovich, Admin Assistant Deborah F. Butler, Legal Counsel Joe Murray, Deputy Legislative Auditor Cindy Jorgenson, Deputy Legislative Auditor CALL TO ORDER 08:31:33 Chairwoman Brown called day two of the Legislative Audit Committee meeting to order at 8:30 a.m. noting the presence of a quorum. Visitors List (Attachment 4) UNMANNED AIRCRAFT SYSTEMS DEPLOYMENT AND OVERSIGHT (17DP-05) 08:32:05 Presented by Hunter McClure, Information Systems Auditor (Exhibit 7) Present from agency: Office of the Governor Raphael Graybill, Chief Legal Council Committee Questions of LAD Staff 08:46:29 Sen. Ellsworth asked Mr. McClure why the aircraft program at the University of Montana was so extensive, was there a program in place for learning. Sen. Ellsworth also asked if that program was part of their curriculum. 08:48:11 Sen. Brown asked Mr. McClure about aircraft numbers at the University of Montana compared to how many aircraft operators they had. 08:49:53 Sen. Brown asked Mr. McClure for general size of the aircrafts and asked about housing them in the committee room. 08:51:14 Rep. Hayman asked Mr. McClure for an exact definition of line of sight. She also asked how a pilot would know if they were flying over the height limit. 08:54:04 Rep. Hayman raised concern with drones interfering with commercial flights and asked Mr. McClure what the state was doing to prevent that. 08:55:38 Sen. McNally referred to page 7 the privacy issues, and asked Mr. McClure what other states were looked at, what kind of regulations were out there to protect that. 08:57:32 Sen. Brown asked Mr. McClure for details about the private flyers. 08:59:07 Sen. Ellsworth stated he was a private pilot himself and was also familiar with drones. 09:00:57 Sen. Flowers asked Mr. McClure who regulated under the 400 feet height limit. Agency Response 09:02:10 Mr. Graybill introduced himself and commented on how thankful he was to LAD, specifically Mr. McClure. He spoke on what the office was going to do to address recommendations. He also stated he would give updates to the LAC. Committee Questions of Agency 09:04:49 Sen. Ellsworth asked Mr. Graybill about reaching out to Montana State University or the Department of Justice to collaborate efforts. 2 09:06:00 Sen. Brown asked Mr. Graybill if the thought there was a need for legislation. 09:07:52 Legislative Auditor Maciver took the podium and spoke about the nature of information systems, their focus, and that the Audit Act referenced technology risk. He encouraged members to use audit function to address emergent technology in order to make the state government enterprise more efficient. Public Comment None Motion 9:10:15 Sen. McNally moved the committee acknowledge receipt of the report, that it was reviewed by the committee, filed, and that copies of the audit report be distributed in accordance with law. Vote: 09:10:35 Carried unanimously by voice vote. MONTANA STATE LOTTERY (17-30B) 09:11:01 Presented by Jenny Erdahl, CPA, Financial-Compliance Audit Manager Present from agency: Angela Wong, Director Armond Sergeant, Finance Services Director Committee Questions of LAD Staff None Agency Response 09:15:38 Angela Wong, Director, introduced herself and her staff. She thanked the LAD and opened herself up for questions from the committee. Committee Questions of Agency 09:17:52 Rep. Burnett asked Director Wong about an update on tracking vehicles with GPS monitoring. 09:18:46 Rep. Regier referred to HB 725 that enabled sports betting and asked Director Wong what Lottery’s plan was for managing that. 09:20:12 Rep. Regier asked who Lottery's contract was with vendor wise and how long they've had the contract, as well as how long ago it was signed. 09:20:43 Rep. Regier commented on how to maximize profits for the state, as he didn’t recall the state even looking at sports betting in 2016. Public Comment None Motion 09:22:21 Rep. Regier moved the committee acknowledge receipt of the report, that it was reviewed by the committee, filed, and that copies of the audit report be distributed in accordance with law. Vote: 09:22:39 Motion carried 11 - 1 by voice vote with Sen. Esp voting no. LOTTERY SECURITY (18DP-02) - STATUS UPDATE - PREVIOUS MEETING REQUEST 3 09:23:03 Legislative Auditor Maciver reminded members that at the October 5, 2018, meeting committee members had asked Lottery to come back and give an update on Lottery Security. 09:23:53 Ms. Wong took the podium and introduced Bryan Costigan, Security Director, and Philip Charpentier, IT Director. Ms. Wong addressed findings, verbalized all updates to committee members and had two handouts for the committee. (Exhibit 8) 09:27:00 Committee Request: Sen. Brown thanked Director Wong for the request for an update and taking the update seriously. Sen. Brown requested Lottery drop a note to Audit when the final two recommendations were completed. JUDICIAL BRANCH (18-27) 09:28:24 Presented by Jenny Erdahl, CPA, Financial-Compliance Audit Manager Present from agency: Beth McLaughlin, Court Administrator Cathy Pennie, Financial Services Director Committee Questions of LAD Staff 09:35:57 Sen. Brown asked Ms. Erdahl about page 9 and asked when the next DOA audit would be. Agency Response 09:36:47 Presented by Beth McLaughlin, Court Administrator, introduced herself and thanked the LAD staff specifically Ms. Erdahl. Committee Questions of Agency 09:42:20 Sen. McNally asked for clarification from Ms. McLaughlin on the WINGS program. 09:43:25 Sen. Brown noted a gap in the 2017 session where nothing happened with legislation. 09:45:37 Sen. Esp commented on appointed officials and noted that process didn’t take very long. Public Comment None Motion 9:47:06 Rep. Regier moved the committee acknowledge receipt of the report, that it was reviewed by the committee, filed, and that copies of the audit report be distributed in accordance with law. Vote 09:47:21 Carried unanimously by voice vote. 09:47:36 Sen. Brown reminded committee members to hand in their performance prioritization voting sheets. 09:48:01 Rep. Abbott asked for clarification on what leaving a score blank would mean, referring to the performance prioritization. OFFICE OF THE SECRETARY OF STATE (18-19) 09:48:53 Presented by Shenae Stensaas, Financial-Compliance Senior Auditor Present from the agency: 4 Christi Jacobsen. Chief of Staff Julie Lake, Chief Operations Officer Dana Corson, Elections Director Brandi Pierson, Chief Fiscal Officer Austin James, Chief Legal Counsel Kellee English, IT Director Committee Questions of LAD Staff 09:58:23 Rep. Hayman asked Ms. Stensaas about the HAVA grant and looked for specific dates. Agency Response 10:01:06 Christi Jacobsen, Chief of Staff, introduced herself and noted the Secretary of State Corey Stapleton’s absence and thanked the LAD staff. Committee Questions of Agency 10:04:34 Sen. McNally looked for clarification from Ms. Jacobsen on the response from the agency that the argument was there was no commuting. 10:05:10 Sen. McNally noted according to the audit 27,000 miles were commuting not teleworking and asked Ms. Jacobsen for clarification. 10:05:30 Sen. McNally asked Ms. Jacobsen if per her agency there was no misuse of the vehicle. 10:05:58 Sen. Ellsworth asked Ms. Jacobsen how the agency used the vehicle as telework. 10:06:42 Sen. Ellsworth asked Ms.
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